Occupational maternity pay (OMP): Employer guide

Employee benefits aren’t just line items on an employment contract. They show your team, potential hires, and the whole world what your company stands for. Benefits shape the employee experience, influencing how your staff feels about the company culture, whether they feel supported, and if they see a future with you.

Parental leave is one of the most meaningful benefits—no matter an employee's plans for starting or growing a family—and offering more than the statutory minimum sends a strong message. Generous support for working parents shows your staff that you have their back, especially during life’s biggest transitions.

In this guide, we’ll cover what occupational maternity pay is in the United Kingdom, how it compares to statutory maternity pay (SMP), and what to consider when building a fair, compliant, and competitive policy for your U.K. hires. 

What is OMP?

In the U.K., occupational maternity pay (OMP), or enhanced maternity pay, is an optional financial benefit that some employers offer during maternity leave. OMP supplements statutory maternity pay (SMP), the U.K.’s government-backed system that provides a percentage of employees’ salary while they’re away from work during this special time.

Contrary to SMP, OMP is employer-funded and varies by organization. It can include topping up SMP or extending the period of paid maternity leave. OMP benefits are typically outlined in employment contracts or staff policies and are common across both the public and private sectors, where individual employers fund the additional support.

While SMP provides a basic level of financial support, OMP reflects a broader strategy to support employee well-being, attract competitive talent, and encourage long-term retention.

Differences between SMP and OMP

What is OMP pay, and how does it compare to statutory maternity benefits? In short, SMP sets a legal baseline for maternity leave in the U.K., while OMP allows employers to take it a step further by offering more generous, tailored support that reflects a company’s values and priorities. 

Here’s how SMP and OMP line up: 

• Eligibility: SMP is available to employees whose earnings average at least £125 a week, who give notice and proof of pregnancy, and who’ve worked continuously for the same employer for at least 26 weeks. OMP is at the employer’s discretion and may have additional or different eligibility requirements. 
• Payment structure: SMP follows fixed government guidelines, including 90% of an employee's average weekly gross earnings for the first six weeks. OMP might include full pay for part of the leave or extended paid maternity leave. 
• Funding: Employers pay SMP and can apply for repayment of most of the cost from the government, whereas OMP is entirely employer-funded. 
• Legal entitlement: SMP is a statutory requirement for eligible employees in all qualifying workplaces across the U.K. OMP, on the other hand, varies by employer and is typically outlined in contractual agreements and HR policies.

SMP and OMP aren’t either-or—they’re designed to work together. OMP enhances SMP by complementing statutory payments or extending paid leave of absence, creating a more secure and supportive experience for new parents. 

Employers that offer OMP signal that they value their people beyond statutory obligations. Including it in your benefits package can strengthen recruitment, boost retention, and build a workplace culture rooted in care and understanding. 

How does OMP work? Legal framework and eligibility

Occupational maternity pay isn’t mandated by law, but if an employer offers it, they’re legally bound to deliver it as outlined in contractual agreements. While employers have the flexibility to design their policies, they need to follow through on what’s promised to avoid legal conflicts.

Here are key legal considerations when offering OMP: 

• Eligibility criteria: Employers decide which expectant mothers are and aren’t eligible for their OMP policy, such as specifying length of service or employment status. However, qualifying criteria must be applied consistently and without discrimination. For instance, requiring one year of service to qualify for extra maternity allowances is common. Denying benefits to part-time staff with the same tenure could raise legal issues unless the OMP policy clearly outlines this distinction. 
• Pay entitlement: Employers can structure OMP allowances in several ways, including full or partial pay of gross earnings for a specific number of weeks. 
• Duration of maternity pay: While SMP runs for up to 39 weeks (plus up to 52 weeks of leave), OMP can cover any portion of that leave. Some employers offer enhanced allowances during the early stages of leave—such as the first 12 weeks—while others cover salary during the entire leave of absence. 
• Repayment clauses: Employers might include a repayment clause that requires mothers to return to work or work remotely for a minimum period following maternity leave. Failure to return to work might result in partial repaying of their OMP. This must be clearly communicated in advance and doesn’t apply to SMP allowances. 

Here's an example of how OMP works: Let's say a mid-sized engineering firm offers 16 weeks of full pay, paid weekly, to employees on maternity leave. To qualify, an employee needs at least 12 months of continuous service. The contract includes a clear return-to-work clause: employees must return for at least four months after their leave or repay the portion of their maternity pay that exceeded statutory entitlements.

How is maternity pay calculated?

Crunching the numbers for OMP is simple with a few quick calculations. Let’s break it down:

1. Determine the employee’s average weekly earnings

An employee’s average weekly gross earnings form the basis of their SMP and OMP allowances. Typically, payroll uses the eight weeks ending roughly 15 weeks before the baby’s due date. 

For instance, if the due date is June 3, count back 15 weeks to February 18. The relevant earnings period would be the eight weeks that end on February 18. Add up the employee’s gross pay (including regular pay, overtime, and any other taxable perks) during that period and divide it by eight to get the average weekly earnings. 

2. Apply the OMP policy

Once you determine the average weekly earnings, apply the OMP policy. If the policy offers 12 weeks of full pay, calculate 12 weeks at the employee’s full weekly salary. After that, the standard SMP structure and the OMP policy will be applied. 

3. Calculate OMP pay deductions

OMP is subject to income tax and National Insurance deductions. Use the employee’s tax code and National Insurance category to determine the appropriate deductions for each pay period. 

Benefits of implementing OMP as an employer 

Today’s employees expect more than a paycheck in exchange for work. They yearn for benefits that promote work-life balance, including policies that reflect fairness, flexibility, and long-term well-being. Offering OMP is one way to meet those expectations—and to attract and hire team members who value a supportive company culture. 

Here’s how paying it forward pays off for employers: 

• Higher return-to-work rates: Enhanced maternity pay reduces the financial strain of taking time off, allowing new parents to take their full leave without the stress of rushing back to work. This makes it more likely that they return engaged, rested, and ready to rejoin the team rather than stepping back permanently or downgrading their role. 
• Stronger retention: Supporting employees through major life events reflects a long-term investment in personal and professional growth and well-being. While it may represent a significant employee cost, it could pay back in higher retention and lower turnover expenses. 
• Enhanced employer brand: Doing the bare minimum can make organizations stand out—but not in a good way. Going above and beyond the statutory obligations for maternity leave helps organizations shine, which helps attract talent in competitive sectors. Strong antenatal care policies reinforce a commitment to equity and fairness, which reflects positively on the overall organization.

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